>> this is "bbc world news america." >> funding of this presentation is made possible by the freeman foundation, newman's own foundation, giving all profits from newman's own to charity and pursuing the common good, kovler foundation, and mufg. >> build a solid foundation, and you can connect communities and commerce for centuries. that is the strength behind good banking relationships, too. which is why at mufg, we believe financial partnerships should

endure the test of time, because with time comes change, and what matters in the end is that you are strong enough to support it. mufg -- we build relationships that build the world. >> and now, "bbc world news america." >> this is "bbc world news america." the f.b.i. confirms north korea hacked sony pictures. president obama says it was a mistake to pull the film at the center of the controversy. >> we cannot have a society in which some dictator someplace can start imposing censorship in the united states. iraqi army,with the a bbc crew goes to the frontline of the fight against islamic state fighters in anbar province. >> ♪

>> the music has been heard in more than 500 films. after an amazingly successful career, he still has one regret. welcome to our viewers on public television in america and also around the globe. president obama says sony pictures made a mistake going the satirical film "the interview," a comedy about the assassination of the company had aoken to him first became at news conference just hours after the f.b.i. confirmed north korea was behind the hacking of the sony system. >> who would have guessed when sony put the film into

production the trouble it would cause? first they came under cyber attack from north korea. today, they came under full frontal attack from the american president over their decision to pull the film worldwide. >> i think they made a mistake. i wish they had spoken to me first. >> this is the reason why. he said people should not be intimidated into changing behavior whether going to a football game because of a terrorist threat or the rerunning of the boston marathon. >> we cannot have a society in someplace dictator can start imposing censorship in the united states, because if somebody is able to intimidate folks out of releasing a satirical movie, imagine what they would start doing when they see a documentary they don't like or a news report --or news reports they don't like. >> all of which begs the question of what response there will be. the president says the cyber attack cannot go unpunished.

>> they caused a lot of damage, and we will respond. we will respond proportionally and we will respond in a place and time and manner we choose. it is not something i will announce today in a press conference. >> sony today defended its actions saying it was left with no choice but to pull the film once the biggest chain said they would not show it after the threat made by the hackers. >when hackers launched their attack on sunday because of the film, the f.b.i. were called immediately. they found cyber fingerprints linking it to another attack on south korean banks and media outlets. the north korean government stands accused. senator john mccain says this should serve as a wake-up call to america and the rest of the world. >> it is remarkable a country like north korea can have that capability. if they are able to disrupt a film, you can imagine what they

are doing or attempting to do to our national defense capability. >> this is not a clip from the film. these pictures are real of the supreme leader kim jong un visiting a computer facility. for sometime now, the world has stood fearful about north korea becoming a nuclear power. add to that concern its acquisition of cyber expertise. >> for more on the fallout from by theking, i'm joined former c.i.a. deputy division chief or coria -- for korea. sony is saying it had no choice, it had to pull the film because theaters were canceling the showing. do you think that is right? did they have a choice or not? >> they were inhibited by the fact that the five largest theater chains in america were not going to show it, so financially and perhaps for liability reasons they felt constrained. i think if we step back from it sends a bad message.

you have sony pull back on this north korean film. another studio shelved a proposed another film about north korea. paramount pulled a theater in texas from showing an old movie called "team america." i think collectively it is sending a wrong message. >> if you are in pyongyang, what are you making of the decision? >> it a victory for north korea. they react strongly to anything they receive as an insult to the leader or regime. they took this movie very seriously in june or july. the government characterized it as an act of war, an act of terror and called upon president obama as well as the u.n. sh secretary general to prevent the release of the movie. to beld you expect them emboldened by this and looking at other things? >> i think they would. we have known they have robust

cyber warfare capability. they have been linked to previous cyber attacks against u.s. government agencies, south korean agencies, as well as banks, businesses, and media organizations. >> the white house says they are weighing their responses. what realistically can the u.s. do in retaliation? >> there are a number of things they can do. contrary to the misperception north korea is the most heavily sanctioned country in the world, which is not true. have.s., you win and e.u. imposed stronger sanctions against iran. that is one reason iran came back to the negotiating table. u.s. has measures it can do unilaterally so it is not subject to chinese veto at the u.n. we have imposed stronger sanctions on iran and even zimbabwe. we can put them back on the state sponsors of terrorism list. this attack fulfills one of those legal requirements. we could identify them as a money-laundering concern, as we

did iran and burma. we could take human rights violations actions against them, as the u.s. has done against zimbabwe and congo. but not north korea despite the inquiry report. there are a number of sanctions we can do using existing law. >> what impact would that have on north korea? >> it would have a significant impact. with targeted financial measures, you're going after the leadership and its financial transactions. 95% of all international financial transactions are dollar-denominated. they have to go through a u.s. treasury controlled bank in america. that gives us a lot of leverage. >> thanks so much. the biggest offensive yet against islamist fighters has ended. airstrikes and 8000 kurdish forces succeeded in driving the extremists from mount sinjar where thousands have been trapped since the summer with little access to food or water.

our diplomatic correspondent has more. >> the battle for sinjar mountain was fierce. these kurdish forces call it their biggest victory so far against islamic state. in the path of the advancing kurdish soldiers, there's plenty of evidence of u.s.-led airstrikes in support. all this is significant because it reverses some of the shockingly quick successes for the islamic extremists back in august when they forced the people to flee for their lives. their desperate plight in the summer triggered local rescue missions and an american-led action at the start of a long fight back. what was this big push by kurdish forces combined with u.s.-led strikes against the extremists? what has it achieved? the aim in this port of northern iraq was to be as much as possible of mount sinjar,

opening a corridor. kurdish forces relied heavily on massive u.s. air power with around 45 different strikes by coalition aircraft reported. all that as around 8000 kurdish troops pushed in from two towns. they have control of a substantial area, but not of the main road to north and south as well as the town of sinjar itself which is still in i.s. hands. so too is iraq's second city, mosul. it is progress, the kurdish commanders concede there is more to do. >> this operation will continue to clear all the areas still under the control of isis. i'm not at or timing liberty to discuss at the moment. >> a reverse for i.s. certainly. this was one of the camps on the mountain last week where so many

of the victims had been stuck for months. they should now be able to escape. but the i.s. fighters who forced them up here still remain a substantial threat. controlling great swaths of northern iraq as well as neighboring syria. james robbins, bbc news. >> islamic state has been defeated on mount sinjar, but it is fighting hard further south. the area is a critical supply route for militants running from syria to the outskirts of baghdad. our middle east correspondent and camera men are the first international broadcasters to have been embedded with the iraqi army at the airbase. they have sent us this exclusive report. >> at the airbase, they are fighting for their lives and the future of iraq. is every hour passes, the so-called islamic state moves closer.

the base is being encircled. the front line was 20 miles away 48 hours later it is less than six. they've only just survived a surprise i.s. attack. the strain is beginning to show. the soldiers have just arrived from the frontline, and they are furious. they say there have been no american airstrikes in the past 48 hours. islamic state have moved to village after village unchecked. this soldier tells me we stood our ground. i.s. advanced with tanks. we only have humvees. what we need our helicopters, combat aircraft, and aerial support. they are saying the conditions were wrong, but the weather is fine now. we stopped the irs offensive. they are terrorists. they suffered many casualties. we are desperate for air cover. it could make all the

difference. after a few hours of sleep, they are ready to face i.s. again. territory that took two weeks to gain was lost in just four hours. if we look over there, you can see the perimeter of the base. outside is anbar. most of that province is in the control of islamic state and sunni militants. for the moment, all that is standing between them and the islamic state are these men. airstrip, the dead and injured week together. the men have been hit hard. they hang from the camp perimeter mourning the loss of the fallen. we thought we came here to see a military offensive. instead, we found a retreat. the soldiers are on edge. they cannot stay on the ground for long.

movement is spotted nearby. warning shots are fired. many of these sunni villages, the islamic state is welcomed. to some, iraq's army is the enemy. the soldiers remain on their guard. a year of fighting has left this province devastated. half a million people have fled their homes. the battle for iraq once again lies in anbar. if this province falls, the islamic state will stretch all the way from syria to the edges of baghdad. bbc news, anbar in western iraq. >> other news from around the world. football's world governing body has agreed unanimously to publish a report on alleged corruption in the bidding process to host the next two world cups in russia and qatar. the fifa president said it would

be releasing what he called an form only after investigations into named individuals were over. the court in istanbul heard issued an arrest warrant for a turkish cleric who is seen as a rival to the president. he is charged with belonging to a terrorist group could he was once close to the president but was accused of trying to overthrow him. sunday atd a raid on a newspaper and television stations cloaks links to him. pakistan has executed two convicted militants after lifting the moratorium on the death penalty. it followed an attack the pakistani taliban at a school in the northwest of the country which left more than 140 people dead, most children. they have told the taliban would not stop fighting. from his laws and -- islamabad, our special correspondent has more. >> the crowds demand vengeance. tonight came the first hangings.

estate under pressure with its first execution since six years. is also turned toward those accused of being ideological backers of extremists. this protest is taking place outside a mosque notorious as a center for radical islam. this is middle-class islamabad. people who rarely come onto the streets. >> they are just louder. we are the silent majority and we are getting louder now. >> on the other side of the wall, the children being schooled in fundamentalism. in the corridor are the bodyguards of the imam. these are nervous times for a man who has praised al qaeda and islamic state. >in the library, he told me condemned the massacre. do you believe it is time for

the taliban to stop? >> they won't stop. whoever tells them to stop will become their enemy. they will say, you just want to wipe out our struggle. i don't think this will solve the problem. if the taliban stops, something new will rise up. they will do the same thing. peoplee are a lot of outside who think you are a terrorist. you are a man who supports murderers. >> in pakistan, everyone says everyone is a terrorist. the army and taliban say to each other you are a terrorist. but the reality is we have to sort the problem. the solution is sharia law. >> these newly released pictures of the dead schoolchildren invade the scale of loss. despite all this, getting a unified response to the tragedy will be difficult. the military and politicians don't trust each other here. though today the prime minister met with army chiefs, both pledging a hard-line response to the destruction.

the state has begun its response to the massacre. in a fragile political system with divisions between politicians and the military and within the military itself, the challenge of defeating the taliban could not be greater. bbc news, islamabad. >> you are watching "bbc world news america." still to come, all eyes are on the price of oil and the fall sending shockwaves to countries around the world. an australian woman has been arrested for murder in the killings of eight children. the 34-year-old was the mother of seven of the children and and aunt to the eighth. the prime minister has described the situation as heartbreaking. be ar police, this must crime scene as grim as many of them have ever seen. in this suburban house, they

discovered the bodies of eight children stabbed to death. the youngest just 18 months, the oldest 15. officers were called to the house soon after 11:00 in the morning after reports the mother of seven of the children was badly injured. she was taken to hospital where she is being treated for stab wounds. a relative who said she was a cousin of the family said it was another of the woman's children, a 20-year-old man, who first alerted police. >> my family at home are waiting. they are sitting around the news. >> neighbors said the family had not been in trouble before. >> i am shocked because, you know, i just saw her this morning. i saw her with her kids. >> australia's prime minister called the killings an unspeakable crime and said all

parents would feel a gutwrenching sadness. he said these are trying days for australia. this horrific crime comes just four days after the sydney siege. they are still laying flowers for the hostages killed. australians were profoundly moved by that event. many will be equally if not more shocked by these killings in karen's -- cairns. bbc news, sydney. ♪ now to the plunging price of oil which is being felt around the world. crude oil prices stabilized a little bit today. since the summer, they have have. the impact has been particularly dramatic in oil-producing nations in the gulf where companies are already shelving investments and laying off workers.

we have this report from the united arab emirates. oil andegion's large gas industry has attracted large engineering companies. many are bracing for lower sales and profits. current orders are considered safe. but unfunded drilling exploration projects are among the most likely to be cut. the construction and refurbishment of oil rigs and offshore platforms at this business brought in three quarters of a billion dollars in new orders in 2013. it like many businesses are facing this uncertainty with staffing. >> this is going to affect the company. confidence,mpact the investment of funds that came here. >> despite the fall in oil revenues, opec refuses to pump less oil and help raise the oil price. that message was reiterated by

the opec chief at a conference in dubai earlier this month. i asked one influential economist at the event if it was a wise decision. >> i think there's a lot to be said for a strategy of not trying to prop up the price until you have some idea of what is feasible. they might be right. maybe it will turn out a lot of shale projects are shut down and the price goes up to $80. at the moment, i think people are waiting and seeing, which is not a stupid thing to do. >> without intervention from politicians, some fear further falls in the oil price could plunge governments and consumers into crisis. bbc news in the united arab emirates. >> watching those oil prices. you may not know the name, but there is no doubt you know his music. he is a composer who has written scores for more than 500 films. even after such an illustrious career, he says he has one regret. that is turning down repeated

requests from clint eastwood. the 86-year-old about to embark on a rare european tour and he has been talking exclusively to our arts editor. >> ♪ filme of the most famous scores ever written. it became the sound not just of a whole genre. the spaghetti western. work of the musician collaborating with his old school friend, the director, a partnership that started in 1964 with a fistful of dollars. >> the music i wrote for fistful of dollars is not the best i gave to him. we reached our best, in my opinion, with "once upon a time in america." >> ♪ >> his career spans over half a

century. he has composed the music for more than 500 films and work for 60 plus directors, but never for clint eastwood. clint eastwood, when he called me to write music for his films, i said no out of respect to sergio leone, not because i did not like the movies he did. i said no to clint. i am really sorry about that. maestro as he is known in his hometown of rome where he has always been based won an honorary oscar in 2007. do you think if you had moved to hollywood that the academy would have awarded you an oscar sooner? >> no, i do not think so.

not take the oscar for the film "the mission," the audience protested. that is ok. no problem. i have had a lot of awards. >> ♪ >> in february, he comes to london to conduct a concert of his work. including no doubt the music from "the mission." >> ♪ >> another classic from his fast repertoire -- vast repertoire. bbc news, rome. the maestro and his music. is there a film he has not done? amazing. that brings the show to a close.

you can find much more news including the latest on north korea and sony on our website. i am on twitter. from all of us, thanks so much for watching. have a great weekend. >> ♪ >> make sense of international news at bbc.com/news. >> funding of this presentation is made possible by the freeman foundation, newman's own foundation, giving all profits from newman's own to charity and pursuing the common good, kovler foundation, and mufg. >> they say the oldest trees bear the sweetest fruit. at mufg, we've believed in nurturing banking relationships

for centuries, because strong financial partnerships are best cultivated for the years to come. giving your company the resources and stability to thrive. mufg, we build relationships that build the world. >> "bbc world news" was presented by kcet, los angeles.

captioning sponsored by macneil/lehrer productions >> woodruff: in his year-end news conference, the president names north korea as the force behind the hacking attack on sony pictures, and says sony should not have backed down in the face of terror threats. >> sony is a corporation. it has suffered significant damage. there were threats against its employees. having said all that, yes, i think they made a mistake. >> woodruff: good evening, i'm judy woodruff. also ahead, tunisia gears up for runoff elections. we look at the struggle for democracy in the country that gave birth to the arab spring.